BDC favorite Main Street Capital announces an unchanged distribution level for the first quarter of 2021 but something is different…
Main Street is not deterred by the bankruptcy filing of one of its restaurant companies. Indeed, the BDC – and sister fund HMS Income – are doubling down and – with an equity partner – acquiring the assets of the bankrupt business.
The famous restaurant chain is the ninth BDC-financed company to file for bankruptcy in July and there are multiple BDCs involved in both the first and second lien debt. Re-published from the BDC Credit Reporter.
A third week of dropping BDC sector prices as market confidence falters. We review the three biggest losers and one of the few weekly winners and also discuss an update from New Mountain Finance and a buyback at THL Credit. We end with the inevitable review of BDC credit trends.
Nominally, this is a re-published BDC Credit Reporter about a drop in the value of bankrupt portfolio company Bluestem Brands, in which three public BDCs are involved. It’s actually an opportunity for the BDC Reporter to discuss a worrisome trend: a decline in recoveries on troubled investments. The implications for the BDC sector could run into the billions of dollars.
We re-publish a BDC Credit Reporter about yet another BDC portfolio company bankruptcy. First, though, we pen a bromide about the “fair market” valuation system and how investors can be misled by the methodology employed.
The second week of BDC earnings season boosts the sector’s overall price levels as BDC financial structures bend but do not break. However, the uncertainties surrounding the future direction of the economy could still change everything.
Given the large amounts and the multiple number of public BDCs involved, we re-publish a BDC Credit Reporter article about a troubled restaurant chain.
For the last time – given that BDC earnings season launches this week – the BDC Reporter updates its compendium of all BDC developments since the Covid-19 crisis began. Plenty of items to review, but less than we expected.
The huge BDC rally of the week before came to a halt, but there were plenty of interesting and unusual price and news developments. The BDC Reporter takes this opportunity to worry aloud about what may lie ahead from a credit standpoint in a very uncertain economic, political and financial environment. Read with a stiff drink.
Main Street Capital – a little late in the day – gets round to updating shareholders about the impact of the Covid-19 crisis on its balance sheet, earnings and dividends. We analyze what we’ve learned to estimate liquidity; leverage and the likely payouts to expect from this much-beloved BDC.
BDC common stock prices broke records during their surge in the week ended Thursday April 9. The BDC Reporter describes what happened and looks forward to what promises to be yet another historic week as the Covid-19 crisis continues to unfold in both expected and unexpected ways.